When a foreign employee resigns, is retrenched, or is posted out of Singapore, the employer's obligations do not end with a final payslip. Singapore's Income Tax Act 1947 requires employers to seek tax clearance for non-citizen employees before their final monies are released, and the mechanism for doing so is Form IR21. Get the timing [...]
Running payroll in Singapore looks simple on the surface — there is no employee income tax to withhold, no equivalent of pay-as-you-earn, and IRAS does not collect tax monthly. But Singapore has its own discipline: monthly Central Provident Fund (CPF) contributions, monthly Skills Development Levy (SDL), monthly Foreign Worker Levy (FWL) where applicable, annual income [...]
The Auto-Inclusion Scheme (AIS) is a system where employers electronically submit their employees’ employment income details to the Inland Revenue Authority of Singapore (IRAS). Subsequently, IRAS automatically incorporates this information into the employees’ online tax returns and assessments. Here's how it works: Employers are required to compile all employment income information and submit it via [...]